Spain’s Abengoa Corp. announced that it will construct a bio-ethanol plant in Uruguay’s Paysandu department, for Alcoholes de Uruguay. The $120 million contract includes constructing an adjoining power cogeneration plant. Work on the facility is slated to begin in January 2012.

Alcoholes de Uruguay chose the Spanish Abengoa Corp. after comparing its proposal with one submitted by Spain’s Elecnor firm.

Alcoholes de Uruguay executive director Leonardo De Leon signed an agreement of intent to form a partnership